The expiration of ArthroCare's COBLATION patents has enabled Arthrex and
ConMed Linvatec to launch new bipolar probes, causing substantial
disruption in the high-value RF probe market. Arthrex and ConMed
Linvatec are expected to transition existing accounts from monopolar
technology to their new bipolar RF probes in the coming years. Bipolar
RF probes command a premium-price over monopolar probes. The transition
to premium-priced bipolar RF probes will apply upward pressure to the
value of the total RF probe market.

Increased competition in the bipolar RF probe segment is expected to
drive modest price erosion, limiting growth. Erosion will be more
pronounced among less sophisticated bipolar probes, while bipolar probes
featuring more advanced technology will maintain prices.

Outflow tubing is used to pull fluid out of the joint space to keep the
operative field clear of surgical debris. Outflow tubing can be used
with inflow-outflow arthroscopy pumps such as Arthrex's DualWave
Arthroscopy Pump and ConMed's 24k Arthroscopy Pump. Relative to
inflow-only systems, inflow-outflow systems reduce the amount of saline
required per procedure. The recent spike in the price of saline has
helped convince many facilities to adopt inflow-outflow systems, driving
growth in the outflow tubing market.